Ayala posts ₱35-B net profit boosted by one-time gains

Published March 12, 2020, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Ayala Corporation, the country’s oldest conglomerate, reported an 11 percent growth in profits to ₱35.3 billion last year, mainly due to divestment gains of ₱23.6 billion from subsidiaries AC Education and AC Energy.

In a disclosure to the Philippine Stock Exchange, Ayala said strong consumer driven revenue growth of Ayala Land, Inc., Globe Telecom, and Bank of the Philippine Islands lifted its bottomline.

However, the firm said its results were weighed down by “the recognition of a remeasurement loss of ₱18.1 billion for Manila Water” while a “slowdown in AC Industrials resulted in a net loss of ₱2.4 billion.”

“The events of the past year have challenged the stability of our corporate momentum over the last decade,” Ayala Chairman and CEO Jaime Augusto Zobel de Ayala said.

He noted though that, “Ayala has proven its resilience across multiple business cycles over the 186 years that we have been in operation.”

Zobel explained that, “This ability to deal with adversity has been built on our fundamental strengths of adhering to the highest standards of corporate governance, always looking to develop value over the long term, remaining flexible to adjust to changing circumstances and constantly aligning our business objectives with the broader development needs of the country.”

He added that, “These fundamental values have stood us in good stead through the years, have defined Ayala as a successful multi business group and ensured its continuity and relevance throughout the years.”

“In the face of adversity, our many stakeholders continue to inspire us to keep moving forward and not lose sight of our commitment to making a lasting, positive impact on the people we serve,” said Ayala President and COO Fernando Zobel de Ayala.

He added that, “Notwithstanding the challenges faced by our water and global manufacturing businesses in the past year, our real estate, banking, telco, and power units continue to serve as engines of growth. This validates the strength of a diversified portfolio and the expansion strategy we put in place a decade ago.”

Ayala Land’s net income grew 13 percent to ₱33.2 billion, BPI’s net earnings jumped 25 percent to ₱28.8 billion, while Globe’s net income ended at ₱22.3 billion, up 20 percent. AC Energy registered net profits of ₱24.6 billion in 2019 while Manila Water’s full-year net profits dipped 16 percent to ₱5.5 billion as the water supply shortage in March 2019 severely impacted the East Zone concession while some cost-side challenges also weighed down on profitability.

AC Industrials recorded a net loss of ₱2.4 billion as headwinds in both the electronics manufacturing services and the global auto industries hampered earnings across its several business lines.